tv [untitled] March 23, 2014 9:30am-10:01am PDT
with city staff to satisfy various issues raised by the investor and the tax attorney. an issue raised by the tax attorney is a true debt tax which is analysis of the cash flow from the project that shows an ability for the project to repay the loan by year '35 5. the annual rent combined with the 3% interest rate will prohibit the project's ability to [speaker not understood] debt tax. therefore, i'm here before you today to ask for a reduction in the interest rate from 3% to 1.46%, which is just low enough to demonstrate repayment in year 55. the city's financial advisor reviewed the numbers and the requested interest rate ~ is determined that -- has determined that the 1.46% interest rate to be reasonable and not excessively low. this reduction in interest rate won't create any significant negative impact to the ocii loan and it won't change the nature of the enforceable
obligation. additionally, the investor and tax attorney have requested that the terms regarding the distribution of surplus cash in the loan agreement are consistent with the ground lease. which has one-third of the surplus cash paid to the developer up to $50,000 and two-thirds paid to the city to pay down the ocii and [speaker not understood] cd loans. all of these technical clarifications are consistent with the city's underwriting guidelines and with 'your approval today, staff anticipates bond closing and construction in april. and that concludes my presentation. thank you. >> madam secretary, do we have any speaker cards on this item? >> i have no speaker cards. >> alrighty, i'm going to open it up to commissioners here for questions and comments. no questions? >> i move that. >> okay. i do have just a couple
questions here. i guess the first is is this -- i was curious to know if this was typical of -- i guess we're in this case a lending institution or a lending entity to lower interest rates after things have been signed and agreed upon. >> yes. actually, thank you, commissioner ellington. actually it's very common. and when we were a part of the redevelopment agency, it was very typical to come back to commission to request a reduction in the interest rate and/or the term of the loan. and in those instances, then, the tax attorney could get comfortable with the project's ability to repay the debt. so, yes, it is typical. >> and then i looked at the spreadsheet that you guys provided in the memo and -- >> teeny-tiny -- >> that's fine.
i was not able to understand the repayment process. >> um-hm. >> and where our agency fit compared to the other investors. so, are we -- where are we in line with the -- who gets repaid first and how does the surplus cash go into that? >> okay. so, there is the tenant rent and then -- and the cash flow really lays it out. >> yeah. >> and there is operating expenses and then there's debt service. >> yeah. >> so, the conventional lenders are all paid above the line in the debt service category. and then below the line is where the developer gets their one-third and then we get the two-thirds of the cash flow to pay down the loan. >> i see, gotcha. and then we are transferring this to the mayor's office of housing? >> ultimately, after construction is completed. >> gotcha. >> um-hm. >> you know, i would just like -- i don't know if -- this seems like a pretty significant request and i would appreciate
if -- is there anybody from -- >> the developer is here. >> got it, there we go. >> developer is here to answer any questions you may have. >> new york city i just wanted to make sure that you were here and someone from the development team was present. ~ no, i just wanted so, i do believe we have a motion on the table here. do we have a second? >> second. >> madam secretary, please take roll. >> commission members, please announce your vote when i call your name. commissioner mondejar? >> yes. >> exemption? >> yes. >> vice-chair rosales is absent. commissioner johnson is absent. acting chair ellington? >> yes. >> the vote is three ayes and two absent. >> awesome. so, i do see that [speaker not understood] is not back yet. we did get through that a lot quicker than expected. so, i would suggest with the permission of the commissioners to take a short recess until
commissioner rosales is not back ~. >> [speaker not understood]. >> so, i will -- okay, let's do that. we are going to take public comment. we're going to move that forward in anticipation of commissioner rosales' return. >> the next item of business is item 6, public comment on non-agenda items. i have one speaker, dianne [speaker not understood]. yes, thank you so much, commissioners. ~ for hearing me before you go on break. i am here, i'm going to read something to you about property management. you already are aware of it, but this is part of my public comment, my three minutes. property management is the operation control and oversight of real estate as used in its most broad terms. management indicates a need to be carefully monitored and accountability given for its useful life and condition. property management is also the management of personal property, equipment, tooling
and physical capital assets that are required and used to build and maintain in item deliverables. in this case property. property management involves the process, real property, i should say, involves the process assistance and manpower required to manage the life cycle of all acquired property. i am stating that because we're doing a lot of building. i say we because i'm a native san franciscan and you represent me as well ~. in california, unless one is an employee, a third-party property manager must be licensed with the california department of real estate and be a real estate broker, which i am. i also own my own business which is called aaa bayview real estate and community services. the reason i'm here today is because there are so many facets to the profession and i'm also a certified property manager. but i'm here because i need your assistance to navigate my inclusion as a property
manager. a lot of the developers that come in have already decided who is going to manage the property. i have been involved in real estate since 2003 and, so, i need your help. and what i'm asking is inclusion -- i am a small business enterprise. i am a lbe enterprise, and i'm also obviously a black business owner, a minority business owner. we, as part of the dda, which have done some great things about helping residents increase their financial situation, to improve their quality of life. i do come under that purview. and, so, i'm going to conclude my presentation with just saying that as a -- also as a homeowner, a voter, that i need the assistance of your committee. i am qualified. i mentioned to you that i'm
certified, and i would look forward to someone reaching out to me in the near future because preparation is everything. thank you so much for your time. i do have my contact information is dianne smith. and it's bbhp realtors for bayview hunters point at comcast.net. and you can find my phone number. thank you so much for your time. i look forward to hearing from someone. >> thank you so much. madam secretary, are there any more speaker cards? >> no other cards. >> seeing that there's no other public comment, i want to close public comment at this time. and i believe we will go into short recess and we will resume when commissioner rosales returns. >>please stand by; meeting in recess >> are we recording?
>> just a moment. >> here we gi want to go ahead and reconvene and call the meet tog order at 2:29, commission on community investment and infrastructure. and i see that vice-chair morales is back -- rosales, sorry. looking here and talking here. >> you did very well. thank you. >> he's doing better than anybody. [laughter] >> carry on. >> so, i'm going to -- >> [speaker not understood]. through the chair, i think the bylaws provide now that the vice-chair has returned, you serve as chair. >> yes. without a vote, yes. >> [speaker not understood]. >> no, we just reconvened the meeting, so, i am going to transfer my duties back to vice-chair rosales. >> thank you. in the next order of business is item 7, report of the chair. >> madam acting chair, do you have a report?
>> no report. >> thank you. >> the next order of business is item 8, report of the executive director. madam director? >> item 8b is what we're reporting on, and i'm pleased to report that just last week, in fact, last monday, i believe, both commissioner rosales as well as george bridges, who is a contract compliance specialist, a senior contract compliance specialist, they both were recognized by fellow sister government agency, the city and county of san francisco, for their efforts in furtherance of small, minority women, or so-called lbe or dbe enterprises. vice-chair and acting chair rosales was recognized for her years of work, both in the public and private sector, and certainly you've seen mr. bridges' work over the course
of your tenure here. i think it really speaks to the policy objectives that you have instilled in staff and the work, the collective worth, really, of the commission, and the great work that we have. this is the task, we believe, in developing these areas. so, just really, it's an announcement. congratulations not only to our acting chair and mr. bridges, but really to the work of the commission. >> thank you. >> congratulations. >> thank you. thank you. you know what they say, you know you've been around the block long enough when the very agency you once were counsel to publicly recognizes your work on behalf of another agency. and staff and i did give credit to the entire commission and the staff because it was [speaker not understood] heart felt that everyone i believe is
on board in advancing the public policies around small and local businesses in our contracts. thank you. >> that concludes my report. >> you should be two people, two commissioners in this, you know, public compliance, you know. why is there only one? >> commissioner singh, we since dissolution, we've had a number of staff did leave. we are in the process of, per your direction through the budget, of staffing and hiring up both a supervisor and an additional contract compliance specialist. and we also have entered into very strategic memorandums of agreement with our fellow sister city agencies in order to provide the greatest depth of resource. so, recently we did enter into a memorandum of understanding with the office of economic and work force development who has their city build program, and to help us do our local hiring
goal compliance. so, it's the full complement of both your staff as well as the best and the brightest from the city or other third parties that are at your disposal. >> we had everything, i guess, before, too. >> and we're in the process of staffing up for all of the important work that we're doing. >> okay, yeah. >> thank you. madam secretary, please call the next item. >> the next order of business is item 9, commissioners' question and matters. madam acting chair in ? ~ >> in commissioners? >> i actually [speaker not understood] as a chair in your absence and i think that's my comments, he he did a good job. [laughter] ~ >> thank you. >> the next order of business is item 10, closed session.
>> announce the closed session. the next item under -- we're going to go -- the commission will go into closed session under the california under government section 54956.9 subsection d1 to confer with legal counsel for existing litigation. ~ as identified on the agenda. do i need to read it out? okay. so, obviously there is no one here, but we don't need to exclude members of the public. >> take a minute to set up here. >> we're back in open session. it is 3:07.
together >> i was six or seven i made a faces a good face. >> when i was younger i know it did something to my body. >> ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ >> i've been drinking coffee since i was 17 really the only thing i'm good at i was trying to find out what i was good at i got a job at the coffee shop i decided to do that the rest of my life. i like the process of the coffee and what are those beans where do they come from oh, they come from a fruit.
>> the coffee stays with me since i was a kid i grew up and opened coffee shops everybody. in the 8 i visited over 11 hundred coffee shops maybe more to see why people go to coffee shops >> we're searched the beans all over the world from east afghan and tokyo. >> when i wanted to do was get into aspect of the personal coffee and the processing and everything else there was multiple steps in making coffee and we did have a lighter roost because of the qualities of the keep once you roost it it home
gisz the coffee. >> one thing about the coffee they were special blends and i spent seven years on one blend so that's my pleasure. each bean they were all chosen and blended with each with different cultural and beans is like people and those people give me a reputation i can't buy. people love you my clients love me they take me to the moves movies. >> fell in love with coffee and went to the coffee shops the community aspect i really enjoyed. >> i think it's important to have a place for people to show
up and talk to their neighbors and recorrect. your surrounded with all those behalf communicated i communities >> i love my city san francisco has a good name my has every cultural in this planet living in san francisco it's a small city 7 by 7 but it's huge. ♪ ♪ ♪ ♪ ♪ ♪ ♪ >> i really like the idea of staying in the neighborhood and living in the mission i've lived here the whole time and the community really stick to it people talk about seattle and portland now they talk about seattle and san francisco.
or portland and san francisco but san francisco is definitely on the cutting-edge of the coffee scene in the entire nation. >> there's so many romance in coffee is surrounds the sourcing of that and thinking about where it came from and how and coffee is wonderful. >> i know for a fact i was born to make coffee. i have a notice from the dad let the life i live speak for me and let's have a cup of coffee and talk about it. ♪ ♪ ♪ ♪